Madras High Court Sets Aside GST Registration Cancellation, Follows Suguna Cutpiece Center Ruling

The Madras High Court has set aside the cancellation of a GST registration, granting relief to the petitioner by directing the revival of the registration subject to compliance with the conditions established in the Court’s earlier decision in Tvl. Suguna Cutpiece Center v. The Appellate Deputy Commissioner (ST) (GST), Salem and Erode. The order, delivered by Justice D. Bharatha Chakravarthy on 17 June 2026, addresses the legal issue of revocation of cancelled GST registrations under the GST Act.

Background

The petitioner, Dinesh Kumar, approached the High Court seeking to quash the order dated 30 December 2024, which had cancelled his GST registration (GSTIN/UIN-33COGPD3500N1Z8). The petitioner also sought a direction to the authorities to revoke the cancellation and restore the registration.

Core Issue and Reference to Precedent

During the hearing, both parties agreed that the matter was squarely covered by the High Court’s earlier judgment in Tvl. Suguna Cutpiece Center and connected batch cases. The Court, therefore, proceeded to apply the operative directions from that precedent to the present case.

Key Directions from Suguna Cutpiece Center

The Court reiterated the following principal conditions for revival of GST registration, as laid down in the earlier judgment:

• Petitioners must file all pending returns for the period prior to cancellation, pay any outstanding tax, interest, fines, and fees for belated filing within 45 days from receipt of the order, if not already done.
• Such payments must be made in cash and cannot be adjusted against any unutilized or unclaimed Input Tax Credit (ITC).
• Any ITC that remains unutilized can only be used after scrutiny and approval by a competent officer.
• Only approved ITC may be used for future tax liabilities.
• Returns and GST for the period after cancellation must also be filed and paid in cash, with correct declaration of supplies.
• Authorities may impose restrictions to prevent undue passing of ITC or bill trading.
• Upon payment of tax, penalty, and uploading of returns, the GST registration shall be revived forthwith.
• The GST Network is to be instructed to make necessary changes to the GST portal to facilitate compliance.
• The entire process is to be completed within 30 days from receipt of the order.

Final Ruling

Applying these directions, the Madras High Court set aside the impugned cancellation order dated 30 December 2024. The writ petition was allowed on the same terms as the Suguna Cutpiece Center judgment. No costs were awarded, and the connected miscellaneous petition was closed.

Legal Takeaway

This decision reinforces the approach of the Madras High Court in granting an opportunity for revival of cancelled GST registrations, provided taxpayers comply with the specified conditions regarding filing of returns and payment of dues. The ruling ensures that procedural lapses leading to cancellation can be remedied, subject to safeguards against misuse of Input Tax Credit and compliance with statutory requirements.